Steve: TOP Consulting January 2025

Overview:

Action Items

• [  ] Review the application criteria for roommate income.(Should we offer double deposit options, similar to the options available for the household?).

Outline

Renewals Process Overview

• Speaker 2 mentions that Alysia will be taking over the renewals and seeks a review from Speaker 1.
• Speaker 1 explains the renewals process, emphasizing the importance of sending a unilateral notice to tenants using a specific form.
• The process includes setting a renewal fee, changing the end date on the lease, and adjusting the rent amount if necessary.
• Speaker 1 discusses the importance of keeping the process binary and avoiding chaos by making decisions unilaterally.

Handling Tenant Responses and Market Analysis

• Speaker 1 describes the steps to handle tenant responses, including sending reminders and follow-up phone calls.
• The importance of market analysis in determining rent amounts is highlighted, with Speaker 2 mentioning the process of reviewing comps for each property.
• Speaker 3 shares their experience with market analysis, noting the ease of running comps due to their real estate background.
• Speaker 1 discusses the context-driven approach to rent negotiations, considering the owner's plans for the property.

Negotiating Rent Adjustments

• Speaker 2 brings up a tenant requesting a rent decrease, noting the challenge of negotiating such requests.
• Speaker 1 advises on the approach to handling rent decreases, emphasizing the importance of running the numbers and considering the broader context.
• The conversation includes a discussion on the historical context of rent decreases in the Austin market, with Speaker 1 sharing past experiences.
• Speaker 1 suggests offering a cash incentive as an alternative to lowering the rent to maintain property value.

Handling Tenant Requests and Market Conditions

• Speaker 2 shares a specific tenant request to decrease rent to $1750, noting the challenge of going backwards on rent.
• Speaker 1 advises on the approach to handling such requests, including offering a cash incentive instead of lowering the rent.
• The conversation includes a discussion on the impact of market conditions on rent negotiations, with Speaker 1 sharing past experiences of rent decreases during economic downturns.
• Speaker 1 emphasizes the importance of maintaining property value and avoiding turnover costs.

Work Order Charges and Tenant Relations

• Speaker 3 discusses the challenges of collecting charges from tenants for work orders, sharing a specific example of a combative tenant.
• Speaker 1 advises on the approach to handling such situations, including documenting policies and offering grace periods for payment.
• The conversation includes a discussion on the importance of maintaining good tenant relations while ensuring charges are collected.
• Speaker 1 shares personal experiences of handling similar situations, emphasizing the need for empathy and clear communication.

Roommate and Household Applications

• Speaker 2 discusses the challenges of distinguishing between roommates and households, sharing a specific example of partners applying as roommates.
• Speaker 1 advises on the approach to handling such situations, including documenting policies and seeking legal clarity.
• The conversation includes a discussion on the importance of maintaining clear policies and avoiding discrimination.
• Speaker 2 considers reviewing and potentially updating their application process to better distinguish between roommates and households.

Adjusting Roommate Criteria

• Speaker 2 discusses the challenges of approving roommates due to strict income requirements, considering potential changes to the policy.
• Speaker 1 shares their approach to approving roommates, including considering the income of one roommate as a guarantor.
• The conversation includes a discussion on the balance between maintaining strict criteria and avoiding vacancy.
• Speaker 2 considers reviewing their criteria to see if adjustments are needed to approve more applications in a soft market.

Final Thoughts and Next Steps

• Speaker 2 thanks Speaker 1 for the helpful insights and discusses the potential changes to their policies.
• Speaker 1 emphasizes the importance of staying flexible and adapting to changing market conditions.
• The conversation includes a discussion on the ever-evolving nature of the property management industry and the need for continuous learning.
• Speaker 1 and Speaker 2 agree to continue the monthly meetings to discuss ongoing challenges and share best practices